Practice question
Under Article 1823, what must the partnership do regarding a third person's money received by a partner within apparent authority and then misapplied?
- Ignore it because it was not the firm's profit.
- Treat it as an automatic donation.
- Make good the loss under the stated conditions.
- Wait until the third person becomes a partner.
- Convert it automatically into capital.
Legal references
- Civil Code, Articles1786–1811 and1816–1824: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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